BBVA offloads Paraguay operation in $270m deal
By Josh White
Date: Thursday 08 Aug 2019
(Sharecast News) - BBVA has reached agreement with Banco GNB Paraguay, an affiliate of Grupo Financiero Gilinski, for the sale of the entire stake that BBVA holds in BBVA Paraguay, it announced on Thursday.
The Spanish banking giant said the aggregate direct and indirect stake of BBVA in BBVA Paraguay represented 100% of its share capital.
It said the consideration for the acquisition of BBVA Paraguay's shares amounted to approximately $270m.
The consideration was subject to regular adjustments for such transactions between the signing and closing dates of the transaction, the board explained.
"It is expected that the transaction would result in a capital gain net of taxes of approximately €20m and in a positive impact on BBVA Group's Common Equity Tier 1 of approximately five basis points," the BBVA board said in its statement.
The company said the closing of the transaction remained conditional on obtaining the required authorisations from regulatory authorities.
It said it expected that the closing of the transaction would take place in the last quarter of 2019.
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